ADM 1101 Chapter Notes - Chapter 4: Stakeholder Management, Social Capital, Corporate Social Responsibility

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Stakeholder engagement: efforts by a corporation to understand and involve relevant individuals, groups, or organizations by considering their moral concerns in strategic and operational initiatives. Identify stakeholders and their influence: develop the organizational practices to understand stakeholders; and, undertake direct contact with stakeholders. A technique of categorizing an organization"s stakeholders by their influence according to two variables; usually involves plotting them on a two-by-two matrix: y-axis: oppose or support corporation, x-axis: importance of stakeholders. Type 1: supportive stakeholder and strategy (involve) Type 2: the marginal stakeholder and strategy (monitor) Type 3: the non-supportive stakeholder and strategy (defend) Type 4: the mixed-blessing stakeholder and strategy (collaborate) Salience: degree to which priority given to competing stakeholders. Power: ability to get firm to do something that it would not otherwise do based on force, threat, incentives, etc. Urgency: perception or assumption that actions of firms are desirable, proper or appropriate, degree to which stakeholder"s claim or relationship calls for immediate attention.

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